What is a NAICS Code?
Overview
NAICS (North American Industry Classification System) is the standard system used by federal statistical agencies to classify businesses by their primary economic activity. Developed jointly by the United States, Canada, and Mexico, NAICS replaced the older SIC (Standard Industrial Classification) system in 1997 and was most recently updated in 2022.
How NAICS Codes Work
NAICS codes are hierarchical, ranging from 2 digits (sector level) to 6 digits (national industry level). The 2-digit code represents the broadest category (e.g., 31-33 for Manufacturing), while each additional digit narrows the classification. For example, 54 is Professional Services, 541 is Professional, Scientific, and Technical Services, 5415 is Computer Systems Design, and 541512 is Computer Systems Design Services.
Who Uses NAICS Codes?
NAICS codes are used extensively by insurance underwriters to assess risk and set premiums, by government agencies for regulatory compliance and statistical reporting, by banks and lenders for credit risk assessment, by market researchers for industry analysis, and by businesses themselves when applying for contracts, loans, or certifications.
NAICS vs SIC Codes
While SIC codes are still used in some legacy systems, NAICS is the modern standard. NAICS covers more industries (especially service and technology sectors), uses a 6-digit structure vs SIC's 4-digit, and is updated regularly to reflect changes in the economy. Many organizations are migrating from SIC to NAICS, which is why crosswalk conversion tools are in high demand.
How to Find Your NAICS Code
The easiest way to find your NAICS code is to describe your business activity and search for the best match. You can use the search tool on trueNAICS to look up codes by keyword, company name, or browse the full directory. You can also check your tax returns (Schedule C), business licenses, or Census Bureau correspondence — these often include your assigned NAICS code.
Frequently Asked Questions
What does NAICS stand for?
NAICS stands for the North American Industry Classification System. It is the standard framework used by the United States, Canada, and Mexico to classify businesses by their primary economic activity.
How many digits are in a NAICS code?
NAICS codes range from 2 to 6 digits. The first 2 digits represent the sector, 3 digits the subsector, 4 digits the industry group, 5 digits the NAICS industry, and 6 digits the national industry (most specific level).
How often are NAICS codes updated?
NAICS codes are revised every 5 years. The most recent revision was in 2022. Updates reflect changes in the economy, including new industries and technologies.
Try it now — Search for a NAICS Code
Look up any NAICS code by company name, business activity, or code number.